|
For Immediate
Release
5/26/11
Local Impact Fee Would Help Protect Communities
Where Drilling Takes Place
an op-ed by Senator Joe Scarnati (R-Jefferson)
It was only several years ago that many Pennsylvanians
first heard the term Marcellus Shale, and very few understood what impact it
would have on our state. That has certainly changed, as this fast-growing
industry brings both opportunities and challenges to our communities and a great
deal of healthy debate about how to best harness its potential.
The Marcellus Shale currently ranks number one as the
fastest growing natural gas production enterprise in the United States, and
sixty percent of it is in Pennsylvania. The shale region has the potential to
supply most of the energy needs for the Northeast for the next 100 years –
that's the good news. But we also face a variety of physical, environmental and
regulatory challenges as we manage this world-class resource.
Because of shale's economic potential, there are many
wide-ranging opinions on if and how much we should regulate this industry. Some
have proposed taxing the drilling companies and using the money to close our
state's deficit. Others oppose any tax, saying that we avoid any actions that
could slow the growth or make us noncompetitive.
Recently, I introduced legislation that I believe strikes a
middle ground in promoting this tremendous economic opportunity while protecting
the communities and residents where drilling is occurring. A Washington, D.C.
think tank organization recently tried to vilify my legislation by labeling it
"job killing-legislation," but nothing could be further from the truth, and
elected officials in Pennsylvania (not federal lobbyists) must be the ones who
ultimately decide what is in the best interests of our job creators and
residents in the Commonwealth.
Senate Bill 1100 would establish a reasonable annual fee per Marcellus Shale
well. The base fee would be $10,000 and adjusted upwards depending on production
levels and the current price of natural gas. A majority of the revenue from the
impact fee would be distributed to affected counties and municipalities to
address such things as road repairs, environmental cleanup or water and sewer
plant improvements in drilling communities across the Commonwealth. A portion
of the fee would be dedicated to conservation districts as well as statewide
environmental and infrastructure projects.
It is estimated that my proposal would capture $121.2
million in payments by March 1, 2012. In addition, each well would generate at
least $160,000 in fees over a decade, based on current gas prices and
widely-accepted production projections. If calculated using current gas prices,
the proposal would collect at least $675 million over five years. This money
will ensure communities impacted by the drilling will have the resources
necessary to address a wide range of local concerns, and at the same time not
push this welcomed economic development to other states.
Under Senate Bill 1100, the Public Utility Commission (PUC)
would publish a model zoning ordinance for local governments. Counties or
municipalities would be prohibited from receiving impact fee revenue if they
adopt an ordinance that exceeds the model written by the PUC. Local
jurisdictions, under the model ordinance, would retain their ability to enact
reasonable restrictions on drilling. But only communities that choose to ban
drilling will not collect money from the impact fees. This, to me, is a common
sense approach to distributing the fee and is supported by several statewide
local government organizations.
My proposal has attracted a great deal of support from local officials and
environmental organizations. The Pennsylvania Association of Conservation
Districts called it "a bold proposal to provide a new steady stream of funding
necessary to further protect our natural resources from the mounting strain from
the production of the Marcellus Shale."
I believe that the Legislature should pass this bill in the
next five weeks so we can begin to distribute monies to our municipalities and
counties for road improvements, water and sewage issues, as well as other
community enhancements. Through a reasonable and well-thought-out impact fee on
shale companies, we can manage this tremendous resource in a way that improves
our economy and protects our quality of life.
Senate President Pro Tempore Joe Scarnati is currently
serving his 3rd term in the Pennsylvania Senate. As President Pro Tempore of the
Senate, he holds the third-highest constitutional office in the State. He was
born and raised in Brockway Pennsylvania and represents the 25th Senatorial
District, which includes Cameron, Elk, Jefferson, McKean, Potter, Tioga and
portions of Clearfield and Warren Counties.
To learn more about Senator Scarnati's legislation, go
to www.senatorscarnati.com and
click on the Marcellus Shale button.
Contact:
Carol
Milligan
717-787-6725
|
